Internet Corporation is considering the acquisition of Homepage Corporation and has obtained the following audited condensed balance sheet:

Homepage Corporation Balance Sheet December 31, 20X5
Assets		Liabilities and Equity

Current assets	$ 40,000		Current Liabilities	$ 60,000
Land	20,000		Capital Stock (50,000
Buildings (net)	80,000		shares, $1 par value)	50,000
Equipment (net)	60,000		Other Paid-in Capital	20,000
			Retained Earnings	70,000
	$200,000			$200,000

Internet also acquired the following fair values for Homepage's assets and liabilities:

Current assets	$ 55,000
Land	60,000
Buildings (net)	90,000
Equipment (net)	75,000
Current Liabilities	(60,000)
	$220,000

Internet and Homepage agree on a price of $280,000 for Homepage's net assets. Prepare the necessary journal entry to record the purchase given the following scenarios:

A) If P pays $200,000 to S

B) JE for the aquiree S when received $280,000 cash from the acquirer (P)

C) (Recording contingent consideration)

P would pay an additional amount on 1/01/2008, if the average income during the 2 year period of 2006-2007 exceeded $80,000 per year. The expected value is $84,000.

1) On 12/31/05 to record the acquistin

2) On 8/01/06 to revise the contingent consideration to $70,000

3) On 8/01/06 to revise the contingent consideration to $98,000

4) On 1/01/08 to settle the contingent consideration clause of the agreement for $75,000

a) when revised to $70,000

b) when revised to $98,000

D) On 1/01/08, BV of S corporation net assets, including goodwill was $240,000, the FV of the net assets excluding goodwill was $180,000, and the FV of the business unit was estimated to $200,000. Is goodwill impaired?